Investment Glossary
Penny Stocks -
These high-risk stocks are given the name 'Penny Stock' because of their low
cost - under $5 a share. Although money can be made in this market, most wise
financial investors avoid these because of their wildly fluctuating prices.
Generally, most penny stocks are made up of newly formed companies which
are virtually unknown, so the investor has little or no information to go by
when attempting to make an investment decision, or are companies that are on
the verge of bankruptcy or in very serious financial shape.
Great care and consideration should be used when considering this type of
investment.
